At present, CDSL has 138 depository participants (DPs) covering 59 cities as against NSDL's score of 179 depository participants covering 35 cities. "Looking at the present pace of 20 DPs per month being registered, we will cross NSDL by March 2001", Mr Damani said here on Monday.

Initially, CDSL has decided to attract high net worth brokers to become depository participants, Mr Damani said. The former BSE president is on a two-day trip to Hyderabad to explain the salient features of the depository to the local brokers and institutional players. The increase in depository participants, especially from broking community, will help the depository to increase the market share to over 51 per cent from the existing 35 per cent. "We are expecting this growth in about three months period", he added.

Further to extend the benefit to the investor, CDSL is not levying any custody charges for holding securities in demat form. However, it will collect just half a paisa towards transaction charges. This will result in substantial savings to the investors, he added.

This is possible because the entire project was implanted at a cost of Rs 26 crore whereas, it was projected at Rs 85 crore by Price Waterhouse under FIR scheme. The present net worth of the company is Rs 105 crore, he said. CDSL system will eliminate delays in receipt of securities to investors as they are directly credited to their account without routing through the broker account, Mr Damani added.